INTERNATIONAL
Monetary Fund (IMF) has reviewed its forecast on Nigeria in its latest World
Economic Outlook (WEO) titled: “Uncertainty in the Aftermath of the UK Referendum,”
posted on its website indicating calamity for the country if not properly
checkmated.
The
nine-page global report showed that Nigeria’s growth projection for this year was
revised downwards, from the 2.3 per cent it had forecast in its April report.
It also forecasts a 1.1 per cent growth for Nigeria in 2017, down from the 3.5
per cent it made in April...
“The
outlook for other emerging markets and developing economies remains diverse.
Growth projections were revised down substantially in sub-Saharan Africa,
reflecting challenging macroeconomic conditions in its largest economies, which
are adjusting to lower commodity revenues.
“In
Nigeria, economic activity is now projected to contract in 2016, as the economy
adjusts to foreign currency shortages as a result of lower oil receipts, low
power generation, and weak investor confidence. These
revisions for the largest low-income country are the main reason for the
downgrade in growth prospects for the low-income developing countries’ group.
“In
South Africa, GDP is projected to remain flat in 2016, with only a modest
recovery next year. In the Middle East, oil exporters are benefiting from the
recent modest recovery in oil prices while continuing fiscal consolidation in
response to structurally lower oil revenues, but many countries in the region
are still plagued by strife and conflict,” it explained.
The
IMF also noted that before the June 23 vote in the United Kingdom in favour of
leaving the European Union (EU), economic data and financial market
developments suggested that the global economy was evolving broadly as forecast
in the April 2016 WEO.
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